What is a Mr. Sandless franchisee required to do regarding debts and obligations related to the operation of their business?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
formation, and shall provide to us to an executed versions thereof. Such covenants shall be substantially in the form set forth in Attachment 4 as revised and updated from time to time and contained in the Manual. You shall indemnify and hold us harmless from any and all liability, loss, attorneys' fees, or damage we may suffer as a result of your failure to obtain executed restricted covenants by employees, agents and third persons as required by this Section.
19. INDEPENDENT LICENSEE; INDEMNIFICATION
19.1 Independent Licensee
You are and shall be an independent licensee under this Agreement, and no partnership shall exist between you and the us. This Agreement does not constitute you as an agent, legal representative, or employee of ours for any purpose whatsoever, and you are not granted any right or authority to assume or create any obligation for or on behalf of, or in the name of, or in any way to bind Franchisors. You agrees not to incur or contract any debt or obligation on behalf of us or commit any act, make any representation, or advertise in any manner which may adversely affect any right of Franchisor or be detrimental to Franchisor or other franchisees of Franchisor. We does not assume any liability, and will not be considered liable, for any agreements, representations, or warranties made by you which are not expressly authorized under this Agreement. We will not be obligated for any damages to any person or property which directly or indirectly arise from or relate to your operations of the Franchised Business. Pursuant to the above, you agree to indemnify Franchisor and hold Franchisor harmless from any and all liability, loss, attorneys' fees, or damage Franchisor may suffer as a result of claims, demands, taxes, costs, or judgments against Franchisor arising out of any allegation of an agent, partner, or employment relationship.
19.2 Responsibility for Debts
You acknowledge full responsibility for all the debts and obligations of your Business including, but not limited, to all bills, debts, taxes, rents, employee taxes, unemployment compensation insurance and employee benefits. You shall not use the Proprietary Marks to incur or secure any obligation for yourself or for any other person or entity.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, franchisees operate as independent licensees and are responsible for their own debts and obligations. Mr. Sandless franchisees cannot incur any debt or obligation on behalf of Mr. Sandless. Franchisees also cannot commit any act, make any representation, or advertise in any manner that may adversely affect any right of Mr. Sandless or be detrimental to Mr. Sandless or other franchisees. Mr. Sandless will not be liable for any agreements, representations, or warranties made by the franchisee that are not expressly authorized under the Franchise Agreement. Mr. Sandless will also not be obligated for any damages to any person or property which directly or indirectly arise from or relate to the franchisee's operations of the Franchised Business.
Mr. Sandless franchisees must indemnify Mr. Sandless and hold Mr. Sandless harmless from any liability, loss, attorneys' fees, or damage Mr. Sandless may suffer as a result of claims, demands, taxes, costs, or judgments against Mr. Sandless arising out of any allegation of an agent, partner, or employment relationship. This means the franchisee is responsible for covering Mr. Sandless's legal costs if someone claims the franchisee is an agent or partner of Mr. Sandless and sues them.
Furthermore, if a franchisee forms a corporation or limited liability company to operate the Mr. Sandless franchise, the corporation or LLC must agree in writing to assume all of the franchisee's obligations under the Franchise Agreement. All shareholders of the corporation, or all members and managers of the LLC, must sign a Guaranty Agreement, personally agreeing to be bound by the terms of the Franchise Agreement, and guaranteeing performance of all of the franchisee's obligations under the Franchise Agreement. This ensures that the franchisee and related parties remain personally liable for the business's obligations even if operating under a corporate structure.